Rallies in small and mid-cap stocks helped lift Dubai’s stock market in early trade on Wednesday while Abu Dhabi and Qatar recovered some of the previous session’s losses.
Dubai-based investment firm Shuaa Capital, which is 48.4 per cent owned by a Dubai state-linked entity, jumped 6.1 per cent, after surging 12.1 per cent in unusually high volume on Tuesday. It has soared in heavy trade over the past 10 days, partly because of speculation that a strategic investor might be acquiring the company.
Builder Arabtec and developer Union Properties rose 1.7 and 1.4 per cent respectively. Dubai’s index was up 0.7 per cent in the first 45 minutes of trade.
“The rally from this year’s lows is over – for now – in the big-cap stocks, and speculators are targeting small and mid-cap companies,” said Sebastien Henin, head of asset management at The National Investor, adding that the trend might continue until first-quarter corporate earnings were released.
Abu Dhabi’s index edged up 0.3 per cent as the largest listed company by market value, Etisalat, which went ex-dividend on Tuesday, rebounded 1.1 per cent.
Energy-related stocks also helped lift the bourse as Abu Dhabi National Energy Company rose 3.8 per cent. The stock is now up over 10 per cent since last week. when the company reported a narrower fourth-quarter loss.
In Qatar, the benchmark was up 0.7 per cent. Gulf International Services, the oil rig provider, added 1.5 per cent.
Qatar National Bank added 0.1 per cent; it is expected to announce first-quarter earnings after the close on Wednesday. EFG Hermes expects a net profit of 2.77 billion riyals and SICO Bahrain 2.71bn riyals, after 2.68bn riyals in the year-earlier quarter.
Follow The National’s Business section on Twitter